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BFCSA: Corrupted or Dumb? Peter Kell circa 2007 We warned you...........................now he is Deputy Chair of ASIC

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Dear Peter, me again. ITS THE BANKS THE BANKS THE BANKS........................3% of brokers are rogues....we agreed on that one in 2003!!!  BUT you and I know 100% of LAFs have been inflated by Banker engineered service calculators that you never helped consumers get the copy of that page. Why?

You even skipped over to Choice as CEO and never helped consumers with that bit of info whilst you were there.  Why is that Peter Kell?  Helping Bank mates perhaps?

Why would you hide the calculator when Choice CEO and when Deputy Chair of ASIC?  Why?  

Here is this gem from 2007 come back to haunt you and its good old Auntie ABC........................... Stephen, the Banks were approving all these loans.

Banks cannot approve loans without checking and, then go on and blame the broker for the bank's approving the loan!!!!!  The Bankers Code deliberately forbids banks to lend unaffordable loans.  ONUS IN LAW is on The BANKS.  

Then Banks in 2007 were sending out emails to Brokers:  "Good News, you can now do ABN's for a Day and we also do NO DOCS so no pay slips necessary"

The evidence is in our BankiLeaks Library at top of our home page....................................

 

Australia drags feet on mortgage broker crackdown

PM - Friday, 30 March , 2007  18:33:00

Reporter: Stephen Long

MARK BANNERMAN: Hundreds of thousands of Americans have lost their homes after being sold home loans they should never have been given and they couldn't afford to pay.

As a result there is now a push in the US for national laws to rein in mortgage brokers and to stop predatory lending. 

The chairman of an influential Congress committee foreshadowed a bill on the issue this week, as the head of the US Federal Reserve, Ben Bernanke, criticised lending practises.

In Australia, laws to regulate mortgage brokers have been proposed for years. But they've been delayed by what critics say is buck-passing by State and Commonwealth governments.

Economics Correspondent Stephen Long prepared this report.

CHUCK SCHUMER: Chairman Bernanke, we live in interesting times.

STEPHEN LONG: Those words greeted the world's most powerful central banker when he journeyed to Capitol Hill.

Democrat Chuck Schumer chairs the Joint Economics Committee, and he used Ben Bernanke's appearance to press the case for tough new laws to rein in irresponsible lending and the middlemen promoting it.

Up to 2.2 million Americans stand to lose their homes after being sold loans they can't afford.

The Vice Chair of the Committee, Congressman Carolyn Maloney, likened surging loan default rates to a tidal wave.

CAROLYN MALONEY: We are facing, by all accounts, a tsunami of defaults and foreclosures. In each of our districts our constituents are encountering payment shock as their sub-prime loans reset to much higher rates.

STEPHEN LONG: A view echoed in the financial markets. 

This is what the top international economist,
David Hale, told Lateline.

DAVID HALE: In the last 12 or 18 months of this boom there was a massive amount of fraud. This industry became, 12 and 18 months ago, so competitive, so aggressive, it became totally irresponsible.

Last year over half the sub-prime loans written had
no documentation. There was no need to prove your income, prove you had a job. Prove you had a bank account. It was ridiculous.

New Century Financial, the second biggest sub-prime lender, a $40 billion balance sheet, announced in December that two-and-a-half per cent of their loans were in default because the
borrower never made a first payment. That's fraud.

STEPHEN LONG: Shades of the tech wreck. 

But Ben Bernanke maintained the bad loans won't cause a recession, though he's highly critical of lax credit standards behind the woes in the mortgage market.

BEN BERNANKE: A large increase in early defaults and recently originated sub-prime variable rate mortgages, c
ast serious doubt on the adequacy of the underwriting standards for these products, especially those originated over the past year or so.

STEPHEN LONG: To powerful Democrats, that lends support to the case for federal intervention.

Chuck Schumer.

CHUCK SCHUMER: Today we will take his words as a further indication that there must be a response on the federal level. When
so many mortgage brokers are able to deceive our most vulnerable families into loans that they could never afford, without anyone batting an eye, that part of the housing finance system is broken. 

I will be introducing a bill that would establish a national regulatory system for all mortgage brokers, including those at non-bank companies. To me it makes very little sense that there should be one standard for banks and another standard for non-banks.

We will also establish a suitability standard for borrowers, so that they'll never issue a loan that the borrower can't afford.

STEPHEN LONG: Those dealing with the fallout of dodgy lending here only
wish Australian politicians would echo that view.

AMY KILPATRICK: If any politician here in Australia was actually saying something similar I would fall over with excitement, quite frankly, as a consumer advocate.

STEPHEN LONG: Amy Kilpatrick is the Principal Solicitor at the Consumer Law Centre of the ACT.

AMY KILPATRICK: One of the main issues that's been highlighted in these Senate inquiries in the US is to actually question the lending practices and say that they're not very good and that's one of the reasons why there's been so many poor loans that have been written. And that's exactly what I'm seeing in my practice. Loans that never should have been written to people that could never afford the loans.

STEPHEN LONG: Peter Kell is the Chief Executive of the consumer association, Choice, and he also wants Australia to adopt something akin to the US proposal.

PETER KELL: It's very interesting that the US is looking to introduce some rigorous regulation in this area and it's about time that we in Australia did the same.

STEPHEN LONG: In Australia, mortgage brokers now originate nearly half of all new home loans.

While most are reputable, the Mortgage Industry Association acknowledges there are
cowboys promoting unsuitable loans people struggle to repay. It's united with consumer interest groups in a call for nationally consistent regulation.

But despite years of talk and promises, the laws are yet to materialise.

Amy Kilpatrick blames government buck-passing.

AMY KILPATRICK: It seems to me that there's been a lot of, I hate to use the phrase but "passing the buck" at a government level. It doesn't seem to me that the Federal Government currently right now views this as a problem for them. And when we have different jurisdictions around the country trying to scramble to do something to protect people it's just not good enough.
It needs a federal response.

STEPHEN LONG: NSW has been promising for years now to develop a model for all the States to adopt. 

Sick of the delays, and stung by a series of scandals, Western Australia recently decided to go it alone on mortgage broker regulation. 
The Federal Government says it's a state responsibility, and since the States enjoy the gains from real estate taxes, they should be the ones to fund it.

MARK BANNERMAN: Stephen Long reporting.

My Notes:P

WA had broker laws to protect consumers since 1974 and SA in 1981.    The Federal Government needed to use the CRA provisions to nail the Lenders and that would have stopped the banks pre 2007)

NSW had the model under the Contract review Act and had done since 1980....to nail the LENDERS! and eventually my research in 2003 was used to take fully funded case to High Court - funded by the Jenman Agents, not by ASIC.  Kell refused.

Please note:  NSW had the powerful CONTRACT REVIEW ACT to nail Lenders in NSW in 1980.  Reba Meagher pointed that out in 2005 in NSW State Parliament.

AMY became the closest to getting it right: "It needs a federal response." and against the Lenders.   We ask How did 100% of exaggerated income inappropriate loans become approved en masse here, and in the United States?  

NOW WE ALL NEED TO WAKE UP -  The brokers never approved the loans - the banks did and when Judges heard the very few cases - they were suitably appalled at what the banks were doing.  Kell knew all the way along IT WAS THE EVIL BANKS and did nothing to save consumers from this agony.  

YES THERE ARE PEOPLE WILLING TO CLIMB UP THE CORPORATE LADDER and tread over the bodies of Mums and Dads along the way.

 

 

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Comments

  • doyla66
    doyla66 Sunday, 23 March 2014

    Heavens, Denise, how many times do we have to tell them: The Banks approve the Loans.

    Talk to any broker who did these loans - especially those brokers who left the industry when they realised what they were under pressure to do: arrange the borrower's information to get as many loans as possible approved by the Bank/Lender, without real consideration as to whether the borrower would be able to afford that loan.

    Smart Brokers bailed big time - even more so when they found out they have the whole can dropped on them, when it wasn't their job to approve the loans.

    Peter Kell, ASIC and Senators, it's not hard. Either Banks approve loans or they don't. If they don't, who does? The postman, on his bike, as he delivers the loan approval documents to the borrower?

    Anyway ..... 3% of all Australian Brokers couldn't possibly create a mess on this scale.

  • doyla66
    doyla66 Sunday, 23 March 2014

    tidal wave of complaints.. exactly. Now banks telling us they have shredded our loan documents, or they are missing or that they are "commercially sensitive" and ASIC, FOS, COSL are OK with that excuse! This is a crime scene and what they are putting duped consumers through is horrendous.

  • doyla66
    doyla66 Monday, 24 March 2014

    All I can say is I hope Peter Kell squirms if he reads this and starts having nightmares knowing he for whatever reason has been too gutless to acknowledge what he knows has been going on let alone do anything about putting a stop to it. As my grandmother would say were she still around don't worry dear his time will come!

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Guest Sunday, 17 November 2019